Innovation, Science and Economic Development Canada said Industry Minister Mélanie Joly unveiled the $1.75 billion Venture and Growth Capital Plan in Toronto on October 22, 2026. The package combines the $1 billion Venture and Growth Capital Catalyst Initiative, known as Growth VCCI, with a $750 million Early and Growth Stage Investment Strategy.
Ottawa says investments through the plan are anticipated to attract at least $3.8 billion in private capital, creating more than $5.5 billion in combined public and private investment for Canada’s venture and growth capital market.
The money starts with investors, not direct startup cheques
Published federal materials frame the plan mainly as capital for fund managers and funds, with the Business Development Bank of Canada administering investments on the federal government’s behalf. ISED’s Growth VCCI page says that program does not make direct investments into companies.
That means the first direct audience is fund-of-funds managers, venture fund managers, pension funds and other institutional investors. Startups may feel the impact later if selected funds raise and deploy more domestic capital into Canadian companies.
How the $1 billion Growth VCCI is divided
Growth VCCI provides $1 billion on a cash basis, starting in 2026–27. It has three streams:
$700 million for the Fund-of-Funds stream: designed to attract private venture capital, including from pension funds and other institutional investors.
$200 million for the Life Sciences stream: focused on Canadian venture capital fund managers that back life sciences companies.
$100 million for the Emerging Manager stream: focused on emerging Canadian fund managers, including those outside traditional venture hubs and those backing strategic sectors.
The $700 million Fund-of-Funds stream is the first part with an open call. Expressions of interest are due by noon Pacific time on January 21, 2027.
Under the call, selected managers must raise $3 from private capital investors for every $1 of public capital. Applicants must be seeking to raise a fund-of-funds of at least $150 million, show Canadian venture capital investment experience and have, or establish within 18 months, a meaningful Canadian presence with a principal office in Canada.
The call also requires at least 60 per cent of fund investments to go into qualified Canadian venture capital funds. Direct investments are permitted for a maximum of 30 per cent of total fund size, and at least 90 per cent of those direct investments must be allocated to Canadian-based companies.
The $750 million strategy is still being designed
The Early and Growth Stage Investment Strategy sets aside $75 million for pre-seed and seed investment and $675 million for later and growth-stage investment. The pre-seed and seed stream is intended for companies at the earliest stages, including research-and-development-intensive sectors such as advanced manufacturing, cleantech, life sciences and quantum technologies.
The larger later and growth-stage stream is meant to strengthen domestic funds backing companies at Series B and later. ISED and BDC are seeking written feedback on the design of that stream until 5 p.m. Pacific time on November 23, 2026.
The discussion guide proposes that selected later and growth-stage fund managers raise at least $2 from private capital investors for every $1 of stream capital. It also proposes minimum fund sizes of $100 million for funds, fund-of-funds and related sidecars, or $30 million for co-investment and follow-on vehicles.
Those terms are not final. They are part of the consultation process, which means the mechanics of the $675 million stream could still change before launch.
The policy target is domestic growth capital
The federal diagnosis is that Canadian companies can start and raise early capital, but larger domestic rounds remain harder to lead from Canada. ISED’s discussion guide says Canada’s domestic investor base is relatively thin at later stages and cites BDC estimates that foreign investors account for 80 to 90 per cent of capital deployed in Canadian venture financings exceeding $50 million.
CVCA’s first-half 2026 data points to a mixed market. Canadian venture investment reached $2.69 billion across 250 deals, with dollars up 17 per cent from the first half of 2025, but deal count fell 8.8 per cent. CVCA also reported that foreign investors participated in 56 per cent of later-stage rounds, up from 30 per cent a year earlier, while growth-stage financing totalled $127 million across three deals.
Building investor capacity for larger Canadian-led rounds could matter most for companies trying to move beyond Series A without shifting control, headquarters or long-term upside outside Canada.
What remains unresolved
The government has not yet published the full delivery model for the $75 million pre-seed and seed stream. The plan has moved beyond a budget promise, but fund manager selection, closing timelines and the point at which capital reaches companies will depend on program design, fundraising and BDC-managed commitments.
Key dates
November 23, 2026, 5 p.m. Pacific time: Deadline for written feedback on the Later and Growth Stage Investment Stream.
January 21, 2027, noon Pacific time: Deadline for expressions of interest under the Growth VCCI Fund-of-Funds stream.
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